Do Kwon does not plead guilty in the US court regarding the collapse of the Terra ecosystem

Terraform Labs co-founder Do Kwon appeared in court in the US on January 2 and did not plead guilty to the fraud related to the collapse of the $40 billion stablecoin TerraUSD (UST), Bloomberg News reported. Kwon appeared before Judge Robert Lehrburger of the United States District Court in Manhattan and agreed to continue to be held in custody without bail. He faces nine charges, including wire fraud, securities fraud, and commodities fraud, stemming from his alleged role in the collapse of Terraform Labs after the prices of the company's LUNA and UST tokens plummeted. After being arrested in Montenegro in March 2023 while trying to travel with a fake passport, Kwon remained in this country in the tug-of-war between the United States and South Korea over where he would face the charges. Both countries accused Kwon of fraud, with South Korea seeking extradition due to his nationality. Meanwhile, Kwon appeals to avoid extradition to the United States, as the penalties for financial crimes in South Korea generally are not as severe. The Constitutional Court of Montenegro dismissed the appeal on December 26, and the Minister of Justice of this country then signed an extradition order for one of the co-founders of Terraform Labs a few days later. On December 31, Montenegro police transferred Kwon to the United States authorities at Podgorica International Airport. Pending trial Prosecutors in New York accuse Kwon of deceiving investors about the capabilities and adoption rate of the Terra blockchain, stating that his actions directly contributed to the catastrophic collapse of the platform. The US attorney's office in Manhattan, which successfully prosecuted FTX co-founder Sam Bankman-Fried last year, is now handling the case against Kwon. Furthermore, Kwon had to face legal consequences. A US jury declared him and Terraform Labs responsible in a civil fraud lawsuit brought by the Securities and Exchange Commission (SEC), resulting in a $4.47 billion settlement. Terraform subsequently filed for bankruptcy. Kwon's lawyer declined to comment after the hearing. The next court session is scheduled to take place on January 8, paving the way for a potentially high-profile cryptocurrency trial in the Southern District of New York. DYOR! #Write2Earn #Write&Earn $BTC